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Basics Of Online Advertising

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My talk at IIM Shillong on Online Advertising.

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Basics Of Online Advertising

  1. WHY DO<br />WE NEED<br />ONLINE ADVERTISING?<br />January 30, 2011<br />Arpit Dhariwal | For IIM, Shillong<br />
  2. “Half of my advertising spend is wasted; I just don't know which half ”<br />~ John Wanamaker<br />
  3. #1.<br />Better Targeting.<br />
  4. Advertising <br />On Facebook<br />
  5. #2.<br />Accuracy in measurement (Better ROI)<br />
  6. Omniture – Analytics Tool<br />
  7. #3.<br />Less Wastage.<br />
  8. Cost Per Click (CPC)<br />The advertiser pays on a per click basis; a click being a user clicking on the ad, to visit the advertiser’s site.<br />Cost Per Action (CPA)<br />The advertiser pays a fixed amount per user action; the action can be an inquiry or lead (CPI, CPL), a sale (CPS), or any other kind of transaction.<br />Cost Per Impression (CPM)<br />The advertiser pays a fixed amount per thousand impressions; an impression being a user seeing the ad.<br />
  9. #4.<br />User Engagement.<br />
  10. The amount of content (web links, news stories, blog posts, notes, photos, etc) shared each month on Facebook.<br />25 BILLION.<br />4 BILLION.<br />The number of images hosted on Flickr.<br />2 BILLION.<br />The number of YouTube videos viewed per day.<br />27 MILLION.<br />The average number of “tweets” per day on Twitter.<br />
  11. #5.<br />Immediate Response &<br />Message Tailoring.<br />
  12. Now,<br />Exactly How To<br />Do It?<br />
  13. Ads directly placed by Advertiser<br />Publisher<br />Advertiser<br />Outsourced<br />Ads placed with Ad Network<br />AD Network<br />AD Agency<br />Ads displayed to clients by publishers<br />AD network connected to an Exchange<br />AD Exchange<br />Advertisers/AD Agencies connected to an Exchange<br />User/Customer<br />
  14. Display Advertising<br />
  15. PAID LISTINGS<br />SEM is effectively paid advertising in search engines, where you 'Pay Per Click' (PPC). It is text advertising delivered in response to 'trigger' words typed into the search box.<br />Search Engine Marketing (SEM)<br />& Search Engine Optimization (SEO)<br />ORGANIC LISTINGS<br />These listings are influenced by SEO. SEO is defined as the process of building pages in a manner which enables the pages to rank highly in 'algorithmically' determined search results, which are generally displayed on the left hand side of the page.<br />
  16. Affiliate Marketing is also known as Performance Based Marketing. A publisher receives a commission for generating a transaction, such as a lead or sale, for an advertiser that the publisher is promoting.<br />Affiliate Advertising<br />
  17. Email Marketing<br />
  18. Social Media is a conversation <br />supported by online tools<br />Social Media Marketing<br />and many more…<br />
  19. Case Study: Nike+<br />
  20. Nike’s market share (running shoes) jumped from <br />48% in 2006 to 61% in 2008. A significant <br />amount of the growth comes from Nike+.<br />Business Week.<br />
  21. Nike Plus community website:<br /><ul><li> tracks each run, pace, distance
  22. comparison with other runs, runners
  23. offline running communities
  24. Competitions – Human Race 10k Run (800k people)</li></ul>Blogging Network<br />Flickr (4,000+ photos for Human <br />Race)<br />Youtube (1,000+ videos for Nike+)<br />
  25. Facts: Dell<br />
  26. Dell has made $3 Million in 2 years as a result of <br />delloutlet on Twitter (650k+ followers) by sending <br />coupons, tweeting about clearance events, new <br />arrival information etc.<br />
  27. THAT’S <br />ALL <br />FOLKS!<br />Arpit Dhariwal<br />E: arpit.dhariwal@gmail.com<br />

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